All those new departments and name brand shops are going to be a problem. Their pricing was dependent upon the new supply method and delay to charge the company.
Now what to do about all the lost suppliers and downgrade of quality? Returning customers will notice it right away.
The BRAND is badly damaged.
No it won't be a problem as far as pricing goes.....it washes when all is said and done.
So far there are no “lost suppliers”..and in fact most are more than willing to hang in there thru these transitions.
However, the “stores within a store” concept makes Penny's something it's not. People don't go to Penney's looking for these “new Brands” they're promoting in this mini-mall climate....they want to go where dresses are..or shirts.. or the mens ‘dept’ or womans ‘dept’...Penney's is a DEPARTMENT store...but Johnson's been trying to make it a mini-mall with-in the Malls...that is not going to work.
That is going to be a problem to restructure in the days ahead..but certainly not impossible.
As for Brand...some of the former Brands are being brought back in....a good move...it remains to be seen how the so called new lines do.
So suppliers aren't the problem...more-so.. how to get their base customers to return back to the store....which they have lost..and evident to all.
It's going to be a challenge...but hardly impossible...not only did the stock-market move at Johnson's departure...but the employees were thrilled...this naturally passes to the customer base who loved Penney's so much I think they will come back in time. I couldn't say that had they not fired Johnson.